Clinton landed in Xian, the ancient Chinese capital, at the Xianyang international airport at 7.14 pm (1114 GMT) aboard `Air Force One' after a brief stopover in Anchorage, Alaska, on the flight from the US.

Clinton and First Lady Hillary Rodham Clinton walked hand-in-hand down the red-carpeted steps from the aircraft and the President was given a warm welcome on the tarmac by provincial officials.

Clinton is heading a 1,000-strong delegation of top US officials and trade leaders but his trip is dogged by a controversy over allegations that the Chinese military funnelled money to his Democratic Party's 1996 election campaign.

Just hours before Clinton's arrival, a Chinese Foreign Ministry spokesman hailed the new era of relations with the US and dismissed as ``noise pollution'' strident objections from Clinton's Republican critics tohis visit, the first by an American President since the 1989 Tiananmen Square incident.

``We believe that the successful mutual visits of the two heads of state will further improve and strengthen the mutual understanding between the two peoples,'' said Foreign Ministry spokesman Tang Guoqiang.

Clinton will arrive in Beijing on Friday evening and will hold the summit meeting on Saturday with his Chinese counterpart Jiang Zemin which is likely to cement the ``constructive strategic partnership'' between the two countries.

The two leaders are also expected to discuss the situation in South Asia in the wake of recent nuclear tests by India and Pakistan.

A number of bilateral issues, including non-proliferation, trade, China's entry into the World Trade Organisation (WTO), human rights, Tibet, Taiwan and other international issues of mutual concern are also likely to figure in the wide-ranging talks between the two Presidents.

Another important subject of discussion will be the Asian financial crisisand on the steps to be taken to stabilise the Japanese yen.

Clinton's landmark visit received a strong economic headstart as US companies signed more than two billion dollars in trade and investment deals before the US President even set foot on Chinese soil.

The announcement of two large power projects led the way.

A consortium headed by General Electric (GE) signed a Memorandum of Understanding for a $ 1.5-billion Sino-US power plant in southern Hainan province, the official Xinhua news agency said.

Clinton's delegation includes Secretary of State Madeleine Albright, Treasury Secretary Robert Rubin, Commerce Secretary William Daley and Chief Trade Representative Charline Barshefksy.

Taiwan leader rejects China's overtures

Taiwan's president Lee Teng-Hui today marked the arrival of US president Bill Clinton in China by rejecting mainland peace overtures.

Lee said moves toward reunification on Chinese terms were not what the Taiwanese public wanted.

But China invited Taiwan's topnegotiator to visit Beijing in a gesture apparently intended to coincide with Clinton's visit to the mainland.

The nationalist leader assured a visiting Honduran parliamentary delegation that there will ``undoubtedly'' be reunification.

But Lee, whom Beijing has repeatedly accused of pushing for independence from the ``motherland'', swiftly reiterated the official Taipei line.

``The goal we (the two sides) have been pursuing is be integrated under the system of freedom, democracy, and equitable distribution of wealth,'' Lee said.